it is 5:00 a.m. at cnbc global headquarters. here is the "five@5. jpmorgan chase warnings of the second half down turn ahead. and janet yellen on the other side of the bet. shifting outlook for u.s. recession before year's end. and in washington, a star studded state dinner as ceos from tim cook to satya nadella

meet with narendra modi. and elon musk and mark zuckerberg and more. and a rough day shaping up for richard branson after the first commercial launch next week it is friday, june 23rd, 2023. you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." thank you for starting your day with us. let's kick off with the nasdaq on track for the worst week since early april. futures are in the red nasdaq down .7.75% you see red across the board dow would open up 100 points lower. remember, it is early. we are checking the bond market. the 10-year treasury is looking at a decline here when it comes to treasuries. investors try to digest the

comments from jay powell and other fed speakers 10-year treasury is down 5 basis points the down side for the 2-year treasury something we will continue to watch. wti is slipping below $70 a barrel down 1.5%. brent crude is at $73. in crypto, we are seeing a bit of a surge bitcoin trying to hold above the 30,000 mark. down .50%. ethereum is below 2,000. time for the check on the early action in europe with joumanna bercetche who is in the london newsroom with more. joumanna >> good morning, frank european markets are trading in the negative as you see behind me with the exception of the swiss index on the final trading day of the week. markets are digesting the weaker

pmi data that came out this morning. flash pmi for europe and the uk. coming in lower than expectation and slowdown of activity from back in may. a bit of a warning sign as far as activity indicators are concerned. ftse 100 is a focus on back of the bank of england 50 basis point hike yesterday some home builders are beaten down down .20% for the index as a whole. this despite uk retail sales are better than expected this morning. dax is down .60% one name is siemens energy that stock is down 30% with the renewables unit. a stock we are watching. as for european fixed income 10-year gilt is 4.24 all of the action has been in the 10-year bund 13 basis points lower on the session. the rally really started to pick up speed with the french and

german composite pmi numbers the eurozone pmi number weaker as well. the reaction in fixed income has been for investors to buy into the market the euro is dipping .80% frank. >> joumanna, thank you very much joumanna bercetche live in the london newsroom. time for the check on the top corporate stories. silvana henao is here with those. >> good morning, frank 3m has agreed to pay $10 billion to settle thousands of lawsuits claiming so-called forever chemicals made by the company contaminated drinking water across the united states that figure could climb up to $12.5 billion. 3m will disperse the funds over a 13-year period to cities and towns and public water suppliers to treat chemicals known as pfas it will take a pre-tax charge in the second quarter shares rallying on the news.

meta plans to pull access to news on facebook and instagram in canada once legislation requiring the internet giant to pay publishers for the content goes into the effect this was approved yesterday and proposed after complaints from the country's media industry which wants tighter regulation to keep social media from dominating the online ad market. people don't use the platform for news. shares of virgin galactic is coming back down to earth. it is seeking to raise $400 million. virgin galactic says it will go to improving the fleet the stock is up 12% this week after announcing plans for the first commercial flight scheduled for next thursday. frank. >> shares down 18% this morning. rough day for the stock and

company. silvana, see you later on. turning back to the markets. janet yellen says risk of u.s. recession are easing because of the job market and cooling inflation. she says there probably needs to be a slowdown in consumer spending to get inflation completely under control let's bring in mark haefele from ubs. mark, great to see you. >> thank you >> agree with janet yellen odds of u.s. recession are lower. how does that shape your view of the second half of the year for markets? >> well, there's no question that the consumer has remained much stronger than many people anticipated over the course of the year that will persist into the second half. they have done so through a variety of things. you know, work from home has put extra cash in people's pockets that they are spending they have gone out on credit cards. we are seeing personal

bankruptcies and dle delinquencs rising play for a 5% upside in the stock or bond side we tilt to the bond side as we see todayin europe, you see surprises in inflation and central bank response and not that strong economic growth. >> i think a lot of people were surprised by other action in the market this year the a.i. trade we here at cnbc, magnificent seven. you call it the surging seven. a 5% possible upside in the market are these stocks going to continue the market? do you believe this is a bubble? a fomo trade or something else more substantial >> it can be all of those things certainly -- >> it can't be all of them >> -- i think that we are not going to to play for the upside. the valuations that nvidia

trades now for example is stretched. all of the games, 80% of the games in the s&p 500 have come from those stocks of we would diversify away from that even the other stocks in the s&p 500 are trading at 15 times valuation. we would go further and look at emerging markets which trade at substantial discount. >> nvidia is trading at 56 teams forward earnings i want to get back to the surging seven. is there one with the best pick for the year >> we have over 3 trillion in asset assets i don't spend a lot of time on stocks that is why you see a shift in allocations in the emerging market stocks for better

valuations. >> we talk emerging market stocks we are seeing chinese equities surge despite the fact that the slowdown is going slower than many people expect >> well w, start with the broad index and from there, i think china is an area we are very interested many of our u.s. clients have really stopped allocating to china. that is not necessarily the case for the world. we are looking for more of a commitment from the chinese government to not massively ramp up stimulus, but do more because they recognize that they need to see economic growth in the second half of the year. we see an opportunity there because the valuations are very attractive >> if we see more chinese stimulus, you are saying that is the time to start buying and going into chinese equities? >> i think it is already started to a degree. they started to loosen up the

requirements >> mark haefele, thank you great to see you more to come here on "worldwide exchange," including the one word that investors have to know today. first, while my next guest says europe's regulatory ramp up could force chatgpt and other a.i. players to abandon the continent entirely. speaking of a.i., hear from the ceo of one major player and the outlook for what is white hot. a worldwide exclusive with the ceo of mongo and we have a very busy hour still ahead when "worldwide exchange" returns. old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities

and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

welcome back to "worldwide exchange." cause for regulation in big tech and a.i. is growing as countries sound the alarm over digital safety and rights of users attention turns to san francisco today where terry brett, commissioner for internal market, will be there for the mission as a regulator the commissioner is expected to meet with tesla ceo elon musk and meta ceo mark zuckerberg and sam altman ahead of the compliance deadline in august. it is not just commissioner brett hoping to strengthen the

dia dialogue helen dixon has joined "worldwide exchange" in the recent weeks with a similar message. >> a lot of concern. i think there is recognition that the general data protection regulation was never going to be the start and finish of regulating platforms now there are more specific laws looking to target more specific risks like the risks that may arise in certain implementations of a.i >> the most important strategic choice is not to regulate technology as such, but regulate the use of technology. only to regulate when something fundamental is at stake. >> let's talk more about this with cyrus mewawalla >> hi, frank >> a lot to unpack here. he has the ability to regulate

big tech and fine big tech companies and has the ability to regulate a.i. with the eu a.i. act which is in draft form right now. those are the things he could do or potentially could do. what do you believe he wants to achieve with this visit? >> i think it is important to state the obvious which is there is no other industry where regulation is such a mesas it is in tech. you know, where else would you see misinformation and ethical concerns and copyright infringement and all issues going unchecked by the regulators i think what they are trying to do is try to warn big tech that when enforcement of the digital services act and digital market act comes in effect in august, means he means business. >> what business does that mean fines or possibly

forcing them to change how they do business or pull out of europe >> i think he has three weapons he can potentially use the first is the digital services act that is about asking big teach or obliging big tech with content with online hate speech or misinformation. that applies to ten big tech companies with the second is the digital markets act which applies to digital gate keepers the people who run the a.i. systems. he can find them as well with the enforcement in august. the third thing is the eu a.i. act which is not coming in at all for another two or three years. 2025 or 2026 >> basically, this is i'm watching you a warning. we have to see how it develops

there. it is not lost that these meetings are happening in the united states. generally, the united states is behind europe with regulation. what would this mean for u.s. regulation down the line with the things from the meeting in how will u.s. lawmakers view them and act on them >> i think what you see with lena khan and what she is doing with amazon. the u.s. regulators now under the democratic regime are under the same progressive lines as european regulators. there are differences. in the u.s., the primary concern for regulators is they must maintain tech supremacy for the u.s. china is a big with economic and military competitor. however, they are always behind on regulation. they have nothing at all in a.i. regulatio regulation by contrast, the eu concern for

regulation is to proper connect t -- protect the consumer that means blocking monopolies from big tech. they are inn ttroducing the a.i. act in 2025. that is the first big thing. china is the tech competitor for the u.s. not eu they have a primary souconcern o protect the communist party. >> i know you don't have a crystal ball, but which u.s. tech giants do you see having the biggest trouble with the eu regulations? >> i think initially for the enforcement that is coming in august, social media platforms like google, meta and tiktok will have to pass stress tests of the we don't know if twitter passed the stress test they have to moderate content. it has proven to be difficult in

the past they will lobby hard in the medium term, the a.i. leaders, microsoft, google, open a.i. and other companies, will have to show that they are not m monopolizing they might be forced in a way to sign a voluntary a.i. pact with breton to show they are series >> cyrus, thank you. ahead here on "worldwide exchange," turbine troubles sending one compans ary'shes sinking. we have more on the global briefing when "worldwide exchange" returns. i do a lot of hiking and kayaking. i needed something to help me gain clarity. so i was in the pharmacy and i saw a display of prevagen and i asked the pharmacist about it. i started taking prevagen and i noticed that i had more cognitive clarity.

memory is better. it's been about two years now and it's working for me. prevagen. at stores everywhere without a prescription. ♪ ♪ this is rochelle, who gives you a shot. ♪ ♪ rebecca is there when you feel not so hot. ♪ ♪ this is larissa, who's feeling glown up. ♪ ♪ and this here is winnie, who zhuzhed up their cup. ♪ ♪ this is victoria, helping women stay healthy. ♪ ♪ these are your kids, snacking snacks ♪ ♪ made with veggies. ♪ ♪ and matty can help ♪ ♪ you find your new favorite color. ♪ ♪ and kyle helps find meds for under 10 dollars. ♪ whoever you are, wherever, whenever, at cvs, healthier happens together. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated.

custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers flexible spending limits that adapt with his business. he used his card to furnish a new exam room, and everyone was happy. built for dr. petsworth business. built for your business. amex business.

welcome back shares of mongodb shares are extended in gains after the a.i. apps the data base has been a big a.i. beneficiary with shares doubling year to date. the announcements expected to boost demand for the product as the a.i. boom continues. i sat down with dev ittycheria and asked about the changes in tech >> i think many other tec technology, many overestimate the impact of the short-term and

long term. clearly a lot of noise of a.i. with chatgpt in the fall of last year we are seeing a lot of customer interest in terms of a.i. and trying to figure out how they can use a.i. to introduce products and seize new opportunities and respond to threats and drive more efficiency of the business it is early days we just made announcement today where we introduced the conductor search when you think about a.i., a.i. is all about building smarter and more intelligent applications one issue is search. can i discern the intent of the q query? it is not just a search for a set of terms, but trying to understand the intent of your question that is where semantic search comes in there are a lot of companies introducing vector data base it is not a lot with the customers advantage and adding more complexity to the data.

>> you have a lot of large e enterprise customers what do you say about the data needs? >> they are all focused on a.i it comes down to a few buckets what can i use a.i. to introduce new products and how can i drive efficiency or customer support or getting my teams to work productively whether it is have my teams collaborate. they are all looking at leveraging a.i. to do that the third area is all about servicing and providing better experiences for the partners as part of the larger ecosystem we see a lot of early days a lot of kicking the tires and testing going on it is a very exciting space. frankly, to put it in perspective, we had 200 a.i.

companies launch in q1 we see about 1,500 companies today. >> i want to ask about china 11% of revenue from asia majority from china. you have partnerships with alibaba and tencent. we have a lot of forecast in recent days. citi and goldman sachs are sharply moving to the down side. what do you hear from the chinese customers with demand and tech spending in general >> mongodb is big in china obvious obviously, china has tons of developers we see a lot of business in east asia and places like korea and taiwan i would say our business with alibaba started in 20919

that is why we announced a new deal in the earnings call with the significant expansion of that relationship. we also are investing more people in china. we are hiring more chriapacity because of demand is high. we see a lot of chinese companies who want to do business outside of china leveraging mongodb they get that option to run it anywhere >> shares of mongo are higher. it is using the world tour with developer conferences like that one in emerging markets to really boost demand for its company. they are seeing an international market with a higher level of demand for app tools let's check on the morning headlines with frances rivera in new york

>> frank, good morning we start with the tragic conclusion to the story that gripped the world since sunday the search for the submersible carrying five people to the wreckage of the titanic. the coast guard confirmed the debris was consistent with the catastrophic implosion the ship's passengers are all among to be dead among them are a father and his son. and the i-95 highway will reopen at noon it happened two weeks after the tanker truck explosion caused the section of the highway collapsed. governor shapiro praised the workers who worked around the clock. and the first overall pick for the nba draft. the first brothers to be drafted in the top five of the same draft in modern nba history.

if you are not familiar with wembanyama, frank, that is a name we will know well how do you propnounce it? >> i'm a huge nba fan. a lot of people think he is the second coming of tim duncan. we will wait and see who? you look at me like you are not a big nba fan. >> i know wembanyama and the kid from france. shaking things up. he is the one to watch >> frances rivera live in new york thank you very much. straight ahead, a new warning from jpmorgan chase on what could be a rough second half for stocks. if you haven't already, follow or podcast check us out on apple or spotify or other podcast apps. don't miss the making of the meme king. the mysterious activist investor ryan cohen catch it tonight at 6:00 p.m.

eastern on cnbc. we're back in a moment stay with us what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create.

it's 5:30 a.m. in the new york city area of we just getting started on "worldwide exchange. the s&p and nasdaq looking to snap the win streak. president biden and modi are touting a new era of relations following the flurry of deals. we are live in washington with the latest. ford preparing to rollout another round of layoffs as the

giant looks to kick the ev ambitions in high gear it is friday, june 23rd. you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. let's pick up the half hour with the check of u.s. stock futures. we mentioned it is red across the board. dow dipping to the down side opening 100 ap 00 points lower. nasdaq on track for the worst week since april set to break an eight-week win streak s&p and dow looking to snap the win streaks as well. the charts are right here. turning to the bond market yields declining in the bond market as investors try to digest what they heard from jay powell and janet yellen as well.

the 10-year treasury is falling 5 basis points from where it was a couple days ago. same for the 2-year treasury in general, seeing a lot of movement in high temperature b - movement in the bond market. and the oil market brent crude at $73 a barrel. same action for the natural gas market wti and brent are on pace for the worst performance in just about two months. time for a check of the top corporate stories with silvana henao. silvana. >> frank, i'm back ford is preparing a new round of layoffs here in the u.s. according to the wall street journal, the cuts could come as early as next week and mostly focused on salary workers. ford announced the reduction of 3,000 salary and contract jobs in north america and india back in august. the automaker is looking to

slash costs as it spends on shift to electric vehicles u.s. regulators are looking at statements by the india adani group. the u.s. attorney office in brooklyn reached out to investors with holdings in the v recent months. the s.e.c. has a similar probe under way and officials are looking at the representations that adani made with american investors following short seller be hindenberg's report. and statements with the bio-steel sales misstatements for canopy growth. it found weakness in the reporting. canopy is cooperating with s.e.c. regulators. >> watching that a lot of turbulence in the

industry stocks are at historic lows. silvana, see you later on. turning to d.c. and prime minister narendra modi is looking for a full-court press after the state dinner with president biden. ceos of apple and microsoft and google at the event after deals announced with the president and prime minister aimed at countering the chinese influence. we have mseema mody with more >> reporter: frank, two major players ra anannouncing plans t up jobs in india. president biden said this is a place where they are both working together >> we are securing our semiconductor supply chains and advance open telecommunication

yet work networks >> reporter: experts remain cautious india has hurdles with semiconductors due to lack of electric power and access to clean water. with the issues, corporate america sees great potential ceos of apple, google and walmart attended the state dinner to rub shoulders with modi and some of the powerful indian ceos. in a few hours, google's ceo will meet with officials to talk about the opportunities, but challenges they are facing on the ground in india. frank. >> seema, a lot of opportunities here i have been following your reporting. there are questions about regulation in india and issues dealing with the government at the federal level and local level. is there any discussion? >> reporter: a great point.

the indian government has been weighing a bill over data and privacy. that is ruffling the feathers o microsoft and meta if that bill does pass, it could make u.s. companies and ability to expand in india an uphill battle that will be one agenda item when the tech ceos meet modi >> seema mody, live in d.c thank you. time for the results of the cnbc technology survey it is about a.i. we begin with half of the members saying a.i. will be the top spending area for the company over the next 12 months with cloud computing and internet of things in the top three as the a.i. boom continues to dominate the conversation in

tech this first half survey was conducted between may 20th and 30th the s&p rose 12% during that time the fed signalled two more possible hikes in the future of the survey 58% said a.i. was critically important, but the answer was second to cloud computing. 63% responded saying that answer third place here is machine learning 53 saying it is critically important. 63% of responses said they are evaluating a.i survey is showing how wide spread this a.i. buzz really is. half said they have an optimistic view on a.i more than 25% say it leads to a

net loss in jobs and another 25% say it is too soon to tell coming up on "worldwide exchange," a twist on the mark zuckerberg and elon musk cage match. a look at that and other top trending storieshe wn "worldwide exchange" returns. quite the story. stay with us >> announcer: the cnbc technology executive council is sponsored by comcast business. . . is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening.

need relief for tired, achy feet? or the energy to keep working? there's a dr. scholl's for that. dr. scholl's massaging gel insoles have patented gel waves that absorb shock to hard-working muscles and joints, for all-day energy.

welcome back to "worldwide exchange." futures right now at the lows. dow would open 100 points lower. the nasdaq is the hardest hit. time for the morning call sheet. we check on the upgrades and downgrades by firms you know key bank raising the target on chipotle from over $2,000 to $2,300 per share. it sees pricing power and improving flow through as inflation on avocado and chicken is an impact and wells fargo is lowering the price target from $12 to $7 per share for under armour shares of under armour down 3% in the pre-market. m morgan stanley is attracting

future val from you the a.i. revolution shares of that company of evotec is up in the early trade. let get to the headlines on the trading desks s around the world with joumanna bercetche. >> frank, we start with gsk. it reached a settlement over the heartburn medication in the u.s. in claims it caused cancer the case won't have to go to trial next month and be dismissed. perhaps the biggest mover is siemens energy down 33% after withdrawing the profit guidance for the full year after quality issues at the wind turbine unit with gamesa. it conducted review of the business and found production problems that could cost more than 1 billion euro. and moving to italy, the italian

oil major and norwegian unit have agreed to buy neptune for 4.9 billion euro it is the largest oil and gas deal in europe over the last decade frank. >> joumanna, thank you very much joumanna bercetche live in the london newsroom. time for the top trending stories. we go back over to silvana henao. silvana. >> frank, let's start. a.i. strikes again this time it is a u.s. judge imposing sanctions on two new york lawyers who submitted a legal brief to the court one included six fake citations generated by chatgpt the two attorneys now have to pay a $5,000 fine, but maintain it was simply a good faith mistake. if you got engaged yesterday and you love onion rings, burgerfi said to submit proof of

the engagement from june 22nd or national onion ring day on facebook winners will receive one year's worth of rings. and zuckerberg and musk cage match moving a few steps closer to reality with the tesla ceo saying he pay want to recruit joe rogan to emcee dana white says he has been texting with the two ceos adding they are quote deadly serious about the fight. forget strictly fisticuffs musk is in favor of going full mma, frank >> two billionaires fighting in an mma i want to bounce something off you. draftkings says mark zuckerberg is the favorite. are you a gambler? >> i'm not >> you have to bet $160 to win

$100 on the meta ceo but musk is the favorite on another book he is a heavyweight. >> we know zuckerberg has this brazilian jujitsu and works out. musk doesn't sleep >> zuckerberg is 12 years younger and done a challenge with 100 pullups and 300 pressups and squats. >> they are going back and forth about it we are getting closer to this being a real thing >> i'll call this news you can't use. silvana, thank you coming up here on "worldwide exchange," the one word that every investor needs to know today. stocks set to close out a rocky week of trading.

our next guest is finding opportunities. and follow our podcast if you miss "worldwide exchange" check us out on spotify or apple or other podcast apps. as we head to break, cnbc is celebrating pride month. here is dow chemical chairman and ceo. >> supporting pride is one way that we can show the lgbtq+ community that we all accept and respect each other for our differences. whatever those differences may happen to be supporting pride gives hope and rean reassurance can be our best and accepted as our whole shelves. it is treating others how we want to be treated with understanding and compassion dad, we got this.

we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

welcome back to "worldwide exchange." a live look at hong kong and washington, d.c. time for the wex wrap up we start with janet yellen saying the risk of the u.s. recession is easing with cooling inflation adding there needs to be a consumer slowdown in spending to get inflation completely under control 3m agreeing to pay up $12.5 million to settle lawsuits that forever chemicals contaminated water supplies around the u.s. the nba says the sovereign wealth fund is offering to buy the wizards and other d.c. sports teams the fund offered to buy a 5%

stake in mondumental. and according to reports, the five part debt sale range from two years to 40 years. and shares of virgin is plunging after the market offering of common stock virgin will add 400 million ahead of the stock offering next week shares of virgin are down 18% in the pre-market and news on facebook and i instagram in canada once the publisher profits law goes into effect. two pieces of economic data this morning with the release of flash manufacturing pmi for june we get earnings from carmax and

speeches from bostic and mester speaking and congress leaves for the holiday break until july 10th. the s&p and nasdaq are poised to break the win streaks. speaki the risk to stocks to the second half of the year is looking unattractive. >> i think big picture with the exception of tech which is important and a.i., i think continues to decelerate. i think the market is at a point where it is pricing in a rosy picture. i just think that the back drop is challenging as we go to the second half. >> for more on the trading day, let's bring in greg sarian founder eof 213

>> good morning, frank >> do you see a pull back in the second half of the year or do you see problems with stocks >> it is important for investors to consider that markets are gaining more clarity given the robust returns in the last six weeks, we could see a dip. the market is a leading indicator. we see debts move further down the road we have clarity the fed has with two more hikes in it we are starting to see the inflation data continue to flatten. our view is the next 6 to 12 months that the markets are not moving what you see today, but what you expect a rosy picture over the next 12 to 18 months. >> you are sounding rosy, greg what is the wex word of the day? >> fundamentals. it is important to get back to

basics few things we are encouraging you to do. review allocation. we see portfolios that are heavy in cash and under weight stocks. that is very heavy technology. we believe it is time to broaden out exposure and looking at areas like healthcare and bio-technology and international investments. we encourage not to try to time the market people are waiting for correction that could be a mistake. we are advocates of dollar cost aver averaging. do not try to time that collection take advantage to do year-end planning do it now. >> greg, you have the rosy picture. we were looking at futures nasdaq down .50% s&p down

your pick is healthcare. negative year to date. why the big upside to he healthcare the ticker etihx, do you believe this is seeing upside? >> we do, frank. it is more focus on bio-technology that is the catalyst look at them number of people over age 80 will triple in the world by 2050. large pharma has a problem over the next two years we think there is a catalyst there for m&a activity in emerging companies >> you are putting money in today? >> that's a mutual fund. we are adding to that on a regular basis. >> okay. hawkish fed. how is that shaping your outlook for today? we are on pace for the down week in the markets

the markets are coming to the realization of another price hike rate hike. >> absolutely. i also believe the market is pricing in the fed they go from .25 to 5.25 the collateral damage occurred the market is sensing one or two more hikes and the fed likely stable for six to nine months. that last hike to first cut has been good for markets. we see the fed cutting rates by this time next year. >> the fed cuts rates, but tightening in the international markets. international ticker dwx what gives you confidence as we continue to see tightening around the world >> good point. a couple of things, frank. we believe the dollar peaked earlier this year. we will continue to see the dollar stable if not weaken

against currencies we are seeing supply chain and foreign goods coming to the u.s. that is a tailwind despite the tragic war in europe, macro conditions in europe and emerging in asia and china is still robust. >> all right greg sarian, thank you one quick look at futures. in the red across the board. nasdaq hardest hit down .50 %. dow opening up 98 points lower that will do it for us on with the -- do it for us on "worldwide exchange. "squawk box" is coming up next from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money...

... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. so, you've got the power of xfinity at home. now take it outside with xfinity mobile. what will you create? like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only $30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. save hundreds a year on your wireless bill over t-mobile, at&t and verizon. and right now, get up to $1000 off select samsung phones. switch today.

good morning india's prime minister meeting with tech executives at the high profile state dinner at the white house. we take you live to washington. 3m agreed to pay12$. billion for chemicals in water co contamination. ftx is looking to claw back payments authorized by sam bankman-fried to the hollywood insider he described as a one-stop shop as celebrity partnerships it's friday, june 23rd "squawk box" begins right now. good morning welcome to "squawk box" here on

cnbc we are live from the nasda